HONG KONG: Hong Kong’s Central streets are grappling with a stark transformation, as nearly 200 shops now sit empty. In Soho, the vacancy rate is painting a grim picture, with over 20% of shops remaining unused. These once-busy spaces, filled with bars and shopping centres, now reflect the city’s struggling retail sector.
The luxury property market is facing similar challenges. The Business Times reported that a house at 15 Gough Hill Road, formerly owned by Chinese property tycoon Chen Hongtian, is now on the market for HK$700 million (S$122 million) to HK$800 million. This is less than half the HK$2 billion it sold for in 2016.
The Bank of East Asia took over the property in 2023, highlighting the immense pressure on Hong Kong’s real estate market. Home prices have now dropped to their lowest in eight years, driven by rising interest rates and a wave of emigration. “This isn’t just another downturn,” said Dr Vera Yuen from the Faculty of Business and Economics at Hong Kong University in an article by Dimsum Daily.
“We’re watching the death of Hong Kong’s old retail model in real-time.” “Hong Kong needs to decide what it wants to be,” added Dr Yuen. “We can’t keep waiting for the good old days to return.
They’re not coming back.” Retail sales continue to decline The struggles are reflected in retail sales, which fell 7.3% year-on-year in November 2024 to HK$31.
7 billion. This marked the ninth consecutive month of decline. Jewellery and watch s.